Incoterms computation

An artist in San Fernando, Pampanga had sold to a buyer in Rio Janeiro, Brazil several wooden sculptures contained in boxes and were loaded in a 1x20’ foot container with a total cubic of 45 having each boxes a dimension of 1.2m x 1.5m x 2.5m. The seller delivers the container to Tap World Express Inc in Parañaque Manila and pays for the inland freight of $1,200 as well as the costs of main carriage of $3,200 from loading port to the Port of Salvador. Included in the seller’s quotation are the ex-factory price of $2,500 per box, export clearance of $2,000, stuffing charge of $150 and insurance of $750 from the artist’s place to Tap World Express Inc. The total handling charge and hauling charge of $2,500 and 1,300 respectively were invoiced separately to the buyer

• CPT, $32,200

• CFR, $33,000

• CIP, $34,500

• CPT, $32,000

2,000 bags of fertilizer with a total of 3 metric tons were transported by Bloom Flowers Co. in Japan to Port of Nagoya and took care of its loading on board Olomana v 145. The origin inland freight and packing expenses amounted to $150 and $80 respectively meanwhile the mark up charges is $2,500 together with the amount of on-carriage. Sampaguita Locale received its billing from Bloom Flowers Co. consisting of free on board value US$1.50/lb, loading to transporting vehicle of $20, loading to vessel of $250 and cost of export customs clearance of $150. The freight which was paid upon arrival of goods at the destination was $ 2,500 and marine insurance policy procured locally is $250.

• FOB, $9,920.64

• FCA, $9,920.64

• FAS, $9,920.64

• Exw, $9,920.64

The seller in Sweden handed over into the custody of a Freight Forwarder a 5 cartons of Machine catalogues with ex-factory price of $5,000 to be transported to NAIA, Philippines. The catalogues were packed in cartons having dimension of 72 x 64 x 64 cm per carton and gross weight 48.50 kgs per carton. All charges from the seller’s warehouse to the Freight Forwarder’s custody has a total value of $2,700 to which amount export customs clearance is included as well. Freight pre-paid in the AWB is $5.35/kg while domestic insurance procured by the importer is $2.75 per cubic centimeter

• CPT, $7,946

• CFR, $8,466

• CIP, $9,532

• CIF, $8,572

Gadget Ltd in Cebu imported 1 pallet of various gadgets from a seller in Chiba, Japan which amounted to $15,700. Gadget Ltd instructed his forwarder to arrange inland freight from seller’s warehouse in Japan to an airline warehouse in Tokyo which costs him an amount of $175 and likewise paid export forwarder’s fee of $350 along with export customs clearance of $150. Air freight charges of $2,500 we pre-paid by the forwarder while insurance of $120 was taken by the importer

• EXW, $ 15,700

• FCA, $ 17,700

• EXW, $ 13,700

• FCA $ 12,700

EM Jones in Gensan Philippines asked for a quotation from Island Cargo Pacific in Apia, Samoa for a 2x20’ FCL of Lead Batteries if they opt to have the goods delivered in their warehouse in Gensan hassle free which means the consignor should also process import clearance and pay the corresponding duties and taxes. The latter sent a draft billing with the following charges; ex-factory price is $17,500, marking up, labelling and packaging is at $1,250. Total invoice price was at $52,000 which includes costs for import duties and clearance of $10,000 and $3,000 respectively. Vendor also declares the total origin handling charges of $500 with main carriage of $2,500 to which amount includes unloading to vessel in the destination of $500, and transportation costs from Port of Cagayan De Oro to EM Jones warehouse of $250. Determine the incoterm used as well as the invoice amount if EM Jones opt to have the transaction concluded on board the vessel.

• FOB, $ 36,250

• FCA, $36,250

• FOB, $35,000

• FAS, $32,450